You may have recently come across news about Dogecoin's price rising again. Even people who are not interested in cryptocurrencies have likely heard of terms like "Dogecoin," "Shiba Inu Coin," or "Meme Coin" at least once.
Meme coins are cryptocurrencies that originate from internet memes. Since they are often based on viral images or characters, they tend to be driven more by hype and humor than by technical utility or innovation.
The most iconic example is Dogecoin. Created in 2013 as a joke featuring the face of a Shiba Inu dog, it has since grown to become a digital asset ranking within the top 10 in global market capitalization.
Why Is Dogecoin Rising Again?
As of May 2025, Dogecoin is trading at around $0.23 (approximately KRW 310), having surged more than 40% in the past month. Several factors are contributing to this recent uptrend.
First, speculation has resurfaced that Dogecoin may be integrated into the payment system of X (formerly Twitter). Elon Musk also referred to Dogecoin as “the currency of the internet,” which renewed investor attention.
Second, the emergence of new meme coins has reignited market interest in the overall “meme coin” theme.
Additionally, because meme coins are highly volatile, many short-term traders are jumping in to capitalize on quick price movements.
Some analysts believe that Dogecoin could reach $0.30 in the short term. However, opinions are more cautious when it comes to long-term prospects.
Structural Risks of Dogecoin
Dogecoin has several notable weaknesses compared to other digital assets.
The most obvious is its lack of real-world utility. While Bitcoin is seen as digital gold and Ethereum serves as a smart contract platform, Dogecoin still lacks a clearly defined purpose or function.
Another issue is its unlimited supply. More than 5 billion Dogecoins are issued each year, which can reduce scarcity and lead to long-term devaluation—similar to fiat currencies in inflationary economies.
Finally, Dogecoin is highly speculative. Its price often fluctuates sharply based on the influence of online communities or public comments from individuals such as Elon Musk. Many investors who bought Dogecoin at its peak in 2021 are still in the red.
Some investors go all-in on Dogecoin under the assumption that "it will go up again." However, this is an extremely risky strategy.
Most altcoins lack solid technical fundamentals or real-world use cases. In fact, more than 80% of crypto projects fail or disappear within a few years. Investing heavily in altcoins is comparable to gambling.
New investors who focus only on “popular” coins often miss proper exit points and suffer large losses.
In such a volatile market, making emotional buy and sell decisions can easily lead to significant mistakes.
To avoid emotional decisions, many investors are turning to automated trading systems.
These systems allow users to
Buy automatically when the price reaches a certain level
Sell when a target profit is achieved
Use dollar-cost averaging to reduce losses in a downtrend
This approach helps maintain a more disciplined and stable investment strategy.
Dogecoin is undoubtedly a coin with a unique story. However, its investment risks are also significant.
It reacts sensitively to short-term news and market sentiment, which makes it more suitable for trading than for long-term holding.
If you are new to cryptocurrency or are looking to reduce risk, consider a diversified portfolio centered around Bitcoin, along with automated trading strategies.
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